UK Retailers Expect Sales To Decline Further: CBI

(RTTNews) - UK retailers expect the decline in sales to deepen in June and sentiment deteriorated at the sharpest pace in five years, latest quarterly Distributive Trades Survey from the Confederation of British Industry showed Tuesday.

A net 27 percent of retailers reported that sales decreased in May compared to 8 percent in April. A net 37 percent said sales will decline further next month. Confidence among retailers plummeted in May at the fastest pace in five years. The balance dropped to -29 percent compared to -19 percent in February.

Further, retailers expect to scale back investment plans for the coming twelve months but the balance rose to -47 percent from -56 percent in February.

About 20 percent of respondents said employment in retail will fall next month compared to 15 percent in May.

"This was a fairly downbeat survey and highlights some of the challenges facing the retail and wider distribution sector," CBI Lead Economist Ben Jones said.

"In contrast to other recent retail data, this survey suggests parts of the sector are still struggling with fragile consumer demand, though online sales seem to be holding up better," Jones added.